Used Cars: selling a car to a friend, free automobile bill of sale, own insurance

Question
I am selling a car to a friend on a payment plan.  I own the car -- totally paid off.  My question is, i am nervous about being the responsible party if something should happen (accident, etc.) during the payment plan (6 months).  Should I transfer the title and have them get their own insurance and hope they pay me?  Is there some type of legal form that I can have them sign that shows they owe me a certain amount, even if I transfer the title?  If I transfer the title, can they legally not pay me?  I guess before I make the decision to let them pay on a payment plan, I need to know what my rights are and what I am responsible for.  Thanks for your help!

Answer
Hi Sarah

I can't give you legal advice, but will say it's a very bad idea selling your car and having Insurance stay in your name,

A bill of sale is a must along with transfer,,, here are some sites that will provide you a Bill of Sale for free and one that will charge, go with the one you feel is best   

 http://www.free-legal-document.com/free-automobile-bill-of-sale.html
 
 http://www.docstoc.com/docs/204875/Contract-for-the-private-sale-of-a-Motor-Vehi...
 
 http://www.carcontracts.net/  

If for some reason you can't connect to the above links I provided let me know and I will re-send.

On the bill of sale state the payment plan with you being the lien holder, also keep an extra set of keys just in case you have to REPO

Ray    http://www.usedcartips.org/